The study ranked Ireland second as the most affordable European country to get a personal loan, with Luxembourg taking the top spot.
Loan expert Rannea analyzed data from Trading Economics, the Organization for Economic Co-operation and Development and Numbeo to create an index of the most affordable European countries for people looking to access personal loans.
Countries were ranked according to their loan repayments as a percentage of their disposable income.
“It’s cheap to blame the lowest paid people for the challenges in our economy.”
The group subtracted per capita consumption expenditure from each country’s typical salary to calculate disposable income. The total cost of personal loan repayments of 10% of average salary (plus national interest rate) was calculated as a percentage of disposable income.
In second place was Ireland, where personal loan repayments were 19.27% of average disposable income, equivalent to €399 per month. This is a personal loan cost of €4,588 plus her national interest rate of 4.5%.
This is calculated by subtracting the cost of living of €21,000 from the average salary of €45,885, resulting in an estimated monthly disposable income of €2,073.
Luxembourg topped the list for personal loan repayments at €626 per month, equivalent to 18.98% of average disposable income, the lowest in the study.
A spokesperson for loan specialist Lanea said: “There are many things to keep in mind when taking out a personal loan and each person’s unique financial situation needs to be considered.” Credit score, interest rate, and repayment terms are all things to keep in mind.
“Make sure you understand the purpose of your loan and plan how you will use the funds. Look for a lender that offers flexible repayment options, depending on your needs, and avoid any problems that may arise during the application process. Be aware of additional charges and fees.”